IVA extension past 5 years

IVAlmostDoneIt

Help!

The last payment for my IVA was due this month, however, following an agreed 2 months abstention to help pay for my Mothers funeral, I WAS expecting my last £328 monthly payment to fall at the end of November 2011 - that was until I received a letter from DFD telling me that as there was no releasable equity in my property, they would be seeking a 1 year extension to my payments. They quoted a clause in the original document I signed in 2007.

I'm devastated. Apart from the funeral, I have made every payment, on time and have even been forced to pay extra when I did overtime at work.

I need somone to tell me if DFD are allowed to do this?

Also, I was told a company called Select would be contacting me to arrange a re-evaluation on my property - this never happened, I just got this letter which admitted no equity existed

This is now affecting my mental state and ability to sleep.

kns_2

If there is no figure set out in your IVA i.e saying that there will be £10000 equity release in year 5,and you have no equity then it should just finish as far as I am aware.

Then if you do have equity and cannot release it then yes they will extend it for another 12 months.

I don't see why they have waited until so close to the end to tell you this:(

Do you have any equity in your property?

IVAlmostDoneIt

Well there must be equity in the property - been payin it off without any problems for 17 years. I had a fixed rate package which ended 3 years into my IVA and had no problem re-mortgaging with Abbey. I know there would be penalties if I was forced to re-mortgage to release equity which I've been told would have been met by DFD?

What should I do?

Am I legally bound to maintain my current payments for another year or can I offer a reduced monthly premium for a further 12 months?

Like many others I've had no pay rise for three years and am under threat of compulsory transfer which would see my travel to work costs rocket by £3000 per year.

debtinfo

these things always hang on what your agreement says, they are all different, you need to get it out and tell us what it says about equity release

FoggyBrain_2

Older agreements often quoted specific equity amounts to be handed over, regardless of whether any existed. As these are coming to completion now more enlightened IP's are going to the creditors and asking for a variation, bringing the older proposals into line with current practice. i.e, if there is little or no equity the IVA finishes as scheduled, if there is an amount of equity ( in excess of £5k) which cannot be release ( as is the norm at the moment) then 12 months payments are asked for instead ( which usually works out cheaper for the debtor).

Suggest to your IP that they seek this variation.